> Why are you then owed money? Why is that a fair expectation?
Because getting the mortgage to buy the house involves parting with a large sum of money, after which some part of the mortgage payment goes towards something called principal. If it just goes towards interest, it may as well be rent.
Not to mention that when you try to sell the thing, there's some expectation by one or more third parties of some percentage of it.
Makes no sense to me. You take a loan to buy something you cannot otherwise afford, then you pay back the loan. Bank wants % on the loan, this is legal, therefore you pay back more than you borrowed. The amount gets split into two buckest, "interest" and "principal", presumably because of size and length of the loan, but arguably mostly to let the bank do various shenanigans that lead to them making more money on it.
Nothing in this gives any good reason for one to expect homes to appreciate in value, other than that some buyers want it to, and I haven't heard any good reason why those buyers shouldn't just be told, "no". If these people then decide not to get mortgages, due to it not being an investment, then all the better for everyone else, who want a home to live in.
But at the same time most people do the bare minimum to maintain their house, so the quality of the property continually decreases. I don't drive a car for 20 years and then expect to make a profit on selling it.
Your analogy might be applicable to the sale of an RV.
What makes a house that has set outside rotting for 30 years more valuable than the day it was originally purchased?
ChatGPT suggests the land might have appreciated, the neighborhood may be more desirable, inflation, or development potential. We don't need programmers anymore because LLMs can do it. It must be an expert on home values too.
I don't give a rats ass what ChatGPT said. Use your brain. Think for yourself.
Sorry, I don't understand. Can you explain again please?